Here in Canada, tax is pretty extreme. If you make $120,000, after tax its 84,000.
Which brings me to my questions, how do you guys minimize your taxes? Do you guys do it yourself or hire an accountant that knows [legal] ways?
Working 100 hour weeks just to get shanked out of 35k is really a blow to the head.
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That's not that bad...are you paying city or state tax also?
With that kind of salary you can't really do much to minimise your liabilities. Some of the more elaborate tax haven schemes would not be cost effective, you can't really classify your expenses as business expenses and you can't be paid as a corporation.
If you are saving for pensions etc, try and buy into a company / national scheme where deductions are made gross so you get the tax savings there.
At what salary do you think starting your own company to minimizes your taxes becomes feasible?
You need your company to agree to pay your company rather than you as an individual, which most will not do.
I wonder why more companies don't do this? It's a fairly easy way to get around paying taxes.
I also wonder why more companies don't give stock as a bonus. I'd much rather risk holding onto a stock for a year and take a 15% tax on long term capital gains than know for a fact the government is gonna rape me out of half my paycheck. I think that's how it works anyway. I'm not an expert on the tax system.
Also, 84k net from 120k is pretty good, that's like 30% tax.
1) I thought it was 15% long term capital gains and a 3.5% Obamacare tax on anything over $200,000.
2) Most stock options are usually for C level people aren't they? I know most large companies have ESSP's but that is usually maxed after a certain percentage and don't you still have to pay income tax on it?
3) Yep, that's 100% right. I'd rather let it ride on pretty much any company than than lose a guaranteed ~50% to the government (pending you live in a place like NY). I'd never hold more than a year though for the sake of diversifying.
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